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Zarrin [17]
3 years ago
11

A company incurred the following costs associated with the purchase of a piece of land that it will use to re-build an office bu

ilding: Purchase price of the land $ 620,000 Sale of salvaged parts already on land $ 25,000 Demolition of the old building $ 23,000 Ground-breaking ceremony (food and supplies) $ 1,100 Land preparation and leveling $ 8,300 What amount should be recorded for the purchase of the land
Business
1 answer:
guajiro [1.7K]3 years ago
3 0

Answer:

$651,300

Explanation:

Cost of an item of property, plant and equipment comprises of purchase price and any cost directly attributable to bringing the asset to the location and condition for operation as intended by management.

<u>Calculation of the cost of  purchase of the land:</u>

Purchase price                            $ 620,000

Demolition of the old building      $ 23,000

Land preparation and leveling       $ 8,300

Cost of  purchase of the land       $651,300

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From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are co
iragen [17]

Part of the Question:

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

                                                     April       May        June           Total

Budgeted sales (all on account) $310,000 $510,000 $160,000 $980,00

Answer:

1. A Schedule of Expected Cash Collections from Sales:

                                            April          May        June           Total for the

                                                                                                Quarter

25% sales month           $77,500    $127,500   $40,000     $245,000

60% 2nd month            222,000      186,000   306,000         714,000

15%  3rd month                51,000       55,500      46,500        153,000

Total cash collections $350,500  $369,000 $392,500     $1,112,000

2. Accounts Receivable balance on June 30th:

Total beginning balance      $328,500

Total quarter sales               $980,000

Total due from customers $1,308,500

Cash receipts for quarter    $1,112,000

Balance on June 30th          $196,500

Explanation:

a) Data and Calculations:

               Feb.         Mar.            April          May          June       Total for the

                                                                                                       Quarter

Sales   $340,000  $370,000 $310,000 $510,000  $160,000  $980,00

Cash:

25% sales month                    $77,500   $127,500   $40,000  $245,000

60% 2nd month     204,000  222,000     186,000   306,000     714,000

15%  3rd month                          51,000      55,500     46,500     153,000

Total cash collections          $350,500  $369,000 $392,500 $1,112,000

b) Account Receivable balance

April 1, Beginning balance       $51,000 from February

April 1, Beginning balance    $277,500 from March

Total beginning balance       $328,500

Total quarter sales                $980,000

Total due from customers $1,308,500

Cash receipts for quarter    $1,112,000

Balance on June 30th          $196,500

c)  The accounts receivable balance is the difference between the beginning balance of $328,500, the sales on account for the quarter of $1,308,500, and the cash receipts from customers for the quarter of $1,112,000.  This gives a balance of $196,500, which represents 75% of June sales of $120,000 and 15% of May Sales of $76,500.

4 0
3 years ago
A sale transaction closes on April 15th. The day of closing belongs to the seller. Real estate taxes for the year, not yet bille
Rasek [7]

Answer:

$607

Explanation:

Data provided in the question:

Date of closing of sales transaction = April 15

Expected tax for the year = $2,110

Number of days in an year = 365

Now,

Per day tax = [ Expected tax for the year ] ÷ [ 365 ]

= $2,110 ÷ 365

= $5.781 per day

Time period from January 1 to April 15 in days = 105 days

Therefore,

The seller's share of the tax bill

= Per day tax × Time period from January 1 to April 15 in days

= $5.781 × 105

= $606.98 ≈ $607

6 0
2 years ago
To maintain production, the quality of materials must be high because no buffer inventories are available to take up the slack.
Sophie [7]

Answer:

Just in time (JIT) inventory management

Explanation:

Just in time (JIT) inventory management is a system created to lower inventory costs and increase manufacturing efficiency. JIT aligns materials and components orders with production schedules in order to reduce inventory levels to the lowest possible level.

It was developed by Toyota in order to reduce the costs of its car manufacturing processes. Once I visited a Toyota pickup factory and it was amazing to see that the whole inventory of finished engines was 4 units, and the factory produced more than 500 pickups per day.

3 0
3 years ago
Understanding that business organizations can be extremely diverse, identify and explain management strategies to promote motiva
Leona [35]

Some management strategies to promote motivation and communication are encouraging group work and having effective communication channels.

<h3>Why are motivation and communication important?</h3>

These two elements make sure employees give the best of themselves and can report/solve problems efficiently.

<h3>How to promote these elements?</h3>

Some strategies that can be used are:

  • Group work: If employees work together in projects they are more likely to communicate; also, this increases motivation as work is shared.
  • Communication channels: This makes employees they can easily and effective communicate with subordinates, colleagues and superiors in different situations.

Learn more about communication in: brainly.com/question/22558440

#SPJ1

4 0
2 years ago
The income elasticity of demand for housing property is exactly 1.40. Due to a recession, you expect incomes to drop by 5% next
a_sh-v [17]

Answer:

Buy 7% less houses

Explanation:

Income elasticity of demand measures the responsiveness of quantity demanded to changes in income

Income elasticity of demand = percentage change in quantity demanded/ percentage change in income

1.40 = percentage change in quantity demanded/ 5%

Percentage change in quantity demanded = 1.4 × 5% = 7%

Because the coefficient of elasticity is greater than one, it means demand is income elastic. This means quantity demanded is responsive to changes in income. A fall in income would reduce the quantity demanded.

I hope my answer helps you

5 0
3 years ago
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